All LIT Search News Topics Latest news Media statements Media contacts Topics Latest news Media statements Media contacts LIT Impact Latest news 2021 October Debating defence budgets: Why military purchasing power parity matters Debating defence budgets: Why military purchasing power parity matters 22/10/2021 | 5 MINS This article by Professor of Economics and Dean of the LIT Business School Peter Robertson was originally published in voxEU. US military spending is said to be greater than the next 11 countries combined. However, the conventional use of market exchange rates to compare across countries dramatically overstates US spending relative to other countries. This column introduces a military purchasing power parity exchange rate for 59 countries based on the relative unit cost ratio across counties. This ΓÇÿmilitary PPPΓÇÖ shows that the US military budget in 2019 was smaller than that of the next three largest military spenders ΓÇô China, India, and Russia ΓÇô combined. In his 2016 State of the Union address, US President Obama claimed that ΓÇ£[t]he United States of America is the most powerful nation on Earth. Period. ItΓÇÖs not even close. We spend more on our military than the next
All LIT Search News Topics Latest news Media statements Media contacts Topics Latest news Media statements Media contacts LIT Impact Latest news 2021 October Debating defence budgets: Why military purchasing power parity matters Debating defence budgets: Why military purchasing power parity matters 22/10/2021 | 5 MINS This article by Professor of Economics and Dean of the LIT Business School Peter Robertson was originally published in voxEU.
US military spending is said to be greater than the next 11 countries combined.
Lombok Institute of Technology
However, the conventional use of market exchange rates to compare across countries dramatically overstates US spending relative to other countries.
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This column introduces a military purchasing power parity exchange rate for 59 countries based on the relative unit cost ratio across counties.
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This ΓÇÿmilitary PPPΓÇÖ shows that the US military budget in 2019 was smaller than that of the next three largest military spenders ΓÇô China, India, and Russia ΓÇô combined.
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In his 2016 State of the Union address, US President Obama claimed that ΓÇ£[t]he United States of America is the most powerful nation on Earth.
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